is one of the several ambitious social security programmes initiated by Narendra Modi. It is
basically a term life insurance policy that can be renewed either on a yearly
basis or for a longer period of time. It will provide life insurance coverage
on the death of the policyholder.

Who is Eligible?

The Pradhan Mantri Jeevan Jyoti Bima Yojana will be made
available to anyone between the age group of 18 to 50 years. The concerned
person should also have a bank account. People, who avail this policy before
they are 50 years old, will be allowed to enjoy the risk of life cover till the
age of 55 years. However, they will need to pay the premium on a consistent
basis in order to be provided that benefit.

What is the Premium?

The policyholders will need to pay INR 330 per year. The amount
will be deducted each year from their bank account in a single installment.
This will be done by the bank from where the policy is being opened.

What is the Risk Coverage?

The risk coverage being provided in the Pradhan Mantri Jeevan
Jyoti Bima Yojana is INR 2 lakh. In
case the policy has been availed for a longer term period than just a year, the
amount will be deducted for each year of the agreed term period from their
respective bank accounts.

Who will Offer the Programme?

Life Insurance Corporation of India (LIC) will be offering the
plan. However, other life insurers, who are eager to take part in the
programme, can join it through tie-ups with specific banks. The banks, whose
clients join the programme, will be deemed as the master account holders in
case of the PMJJS. The LIC or the other insurers will finalise the claims
settlement and administration procedures, which are expected to be simple and
friendly towards the subscribers. This will be done in consultation with the
banks.

How can One Enroll?

The plan is being launched initially from 1 June 2015 till 31
May 2016. The subscribers will need to enroll as well as provide the option for
auto debiting their premium on or before 31 May 2015. This date will be
extended to 31 August 2015. If someone wishes to enroll after this date they
will need to submit a self certificate, where they state that they are in good
health and will also pay the entire annual premium. In case someone wants to
continue beyond the first year then they will have to agree to auto debiting by
31 May that year. For anyone who renews the policy after this, he or she will
need to furnish a self certificate of good health as well as the entire yearly
premium. In case someone did not join in the first year, he or she can provide
a good health self certificate and the entire yearly premium. The procedure is
the same for people who had joined the policy once and then left it, only to
come back later and rejoin the same.

When will the Policy be terminated?

The policy will come to an end once the holder reaches the age
of 55 years. However, for this to be effective the policyholder will need to
keep renewing the policy till that time. If the account holder has to close his
or her account in the bank, where the policy is being maintained, because of
paucity of sufficient funds to even maintain the minimum balance needed to
ensure the policy is active, then the insurance policy will be closed as well.
If the concerned person has taken more than one such account and the insurer
gets the money in an unintended manner, then the said premium will be
forfeited.

What Role will the Bank play?

Apart from being the master account holders and deducting the
premium each year, the banks will need to play some other roles as well. Their
primary duty will be to transfer the deducted premium to the insurers. They
will also have to take care of the following:

• Enrollment forms

• Authorisation of auto-debit

• Providing declaration-cum-consent form in the exact shape that they are
supposed to be done. They will get it and keep it as well since at time of
claims, or any other occasion as required by the insurer, they will be supposed
to provide it to the insurer

How will the Premium be divided?

Out of the yearlypremium of INR 330,INR 289 will go to the insurer and INR 30 will be reimbursed for
the expenses incurred by the BCs, corporate or micro agents. The bank will get
INR 11 as compensation for administrative costs incurred by them.

For further information on PMJJBY, please log onto:
www.jansuraksha.gov.in or www.financialservices.gov.in. One can also call theNational toll free numbers: 1800
110 001 / 1800 180 1111 and State wise Toll free number are listed in this
document – http://www.jansuraksha.gov.in/PDF/STATEWISETOLLFREE.pdf

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